Sale of 270 MW onshore wind project in Australia
As a result of the strategic review announced in June 2019, Tilt Renewables has entered into an agreement to sell the 270 MW Snowtown 2 wind farm to an entity wholly‐owned by funds managed by Palisade Investment Partners Limited (Palisade) and First State Super, for an enterprise value of AUD1,073 million (US$733 million).
Snowtown 2 was developed by Tilt Renewables and has operated successfully for 5 years since construction completion and full commissioning were achieved in 2014.
Deion Campbell, Chief Executive of Tilt Renewables said “the sale of Snowtown 2 is consistent with Tilt Renewables’ focus on delivering shareholder value from market opportunities and ensuring capital is available to execute near‐term, high‐value opportunities from its development pipeline. It is pleasing to see the market acknowledge the quality of this asset, which is representative of the quality of the rest of our operational and development portfolio and the value our highly experienced team can create for shareholders over time.
We are confident that Palisade has the experience and credentials to continue to successfully operate Snowtown 2 and maintain the strong relationships established with key project stakeholders. In particular, the local Snowtown community and project landowners, with whom we will continue to maintain a connection via our Snowtown 1 asset.”
The transaction will occur through the sale of shares in Snowtown 2 Wind Farm Holdings Pty Ltd (S2WFH) for AUD472 million (US$322.7 million). S2WFH is being sold with Snowtown 2’s existing project finance facility, which has an expected balance of approximately AUD611 million (US$417.8 million) at transaction closing. The purchase price is subject to customary closing adjustments. The transaction is expected to close before the end of 2019.
Net proceeds from the transaction will be approximately AUD455 million (US$311 million) after transaction-related costs. These proceeds will add to the AUD86 million (US$58 million) of unrestricted cash released as a result of the Snowtown 2 refinancing that was completed in October 2019.
Lazard is acting as financial advisor and Gilbert + Tobin is acting as legal advisor to Tilt Renewables in relation to the Snowtown 2 transaction.
